Business News
SACRAMENTO – Insurance Commissioner Dave Jones announced Wednesday that he has approved the first surety bond program for the cannabis industry in the state of California.
Continental Heritage Insurance Co. is the first insurer in the state to be approved to offer surety bonds for the cannabis industry.
"Cannabis businesses should have insurance coverage available to them just like any other California business," said Insurance Commissioner Dave Jones. "As insurance commissioner, my mission is insurance protection for all Californians, which includes insurance for California's legalized cannabis businesses. I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market."
Cannabis Surety Bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act, or MAUCRSA. The state of California requires a surety bond in the amount of $5,000 for most licensing categories.
Surety bonds are required by licensing agencies to guarantee the behavior of licensees. A license bond guarantees that the entity will comply with the laws and regulations for that entity. These bonds ensure compliance with licensure and permit requirements, and guarantee payments related to the cost incurred for the destruction of cannabis goods and materials in the event of a violation of the applicable regulations.
The new program from Continental Heritage is the first-of-its-kind for California's new and evolving cannabis industry.
Commissioner Jones launched an initiative last year to encourage commercial insurance companies to write insurance to fill coverage gaps for the cannabis industry.
This first filing and approval of commercial insurance for the cannabis industry was announced in November of last year as a successful result of Commissioner Jones' initiative.
Jones has convened meetings between commercial insurance company executives and cannabis business owners to educate the insurance industry about the sophistication, professionalism and risk management of the cannabis industry. Jones has also organized tours for insurance executives at cannabis businesses.
In October of last year, Jones held a first-in-the-nation public hearing to identify insurance gaps faced by the cannabis industry. Cannabis businesses and insurance industry representatives testified about the limited availability of insurance for cannabis businesses.
The hearing revealed that while there is insurance available from surplus lines insurers, insurance coverage is limited in scope and, until the approval announced last November, commercial carriers were not yet writing insurance.
Jones also announced that department staff would be allocated to cannabis insurance filings.
Continental Heritage Insurance Co. is the first insurer in the state to be approved to offer surety bonds for the cannabis industry.
"Cannabis businesses should have insurance coverage available to them just like any other California business," said Insurance Commissioner Dave Jones. "As insurance commissioner, my mission is insurance protection for all Californians, which includes insurance for California's legalized cannabis businesses. I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market."
Cannabis Surety Bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act, or MAUCRSA. The state of California requires a surety bond in the amount of $5,000 for most licensing categories.
Surety bonds are required by licensing agencies to guarantee the behavior of licensees. A license bond guarantees that the entity will comply with the laws and regulations for that entity. These bonds ensure compliance with licensure and permit requirements, and guarantee payments related to the cost incurred for the destruction of cannabis goods and materials in the event of a violation of the applicable regulations.
The new program from Continental Heritage is the first-of-its-kind for California's new and evolving cannabis industry.
Commissioner Jones launched an initiative last year to encourage commercial insurance companies to write insurance to fill coverage gaps for the cannabis industry.
This first filing and approval of commercial insurance for the cannabis industry was announced in November of last year as a successful result of Commissioner Jones' initiative.
Jones has convened meetings between commercial insurance company executives and cannabis business owners to educate the insurance industry about the sophistication, professionalism and risk management of the cannabis industry. Jones has also organized tours for insurance executives at cannabis businesses.
In October of last year, Jones held a first-in-the-nation public hearing to identify insurance gaps faced by the cannabis industry. Cannabis businesses and insurance industry representatives testified about the limited availability of insurance for cannabis businesses.
The hearing revealed that while there is insurance available from surplus lines insurers, insurance coverage is limited in scope and, until the approval announced last November, commercial carriers were not yet writing insurance.
Jones also announced that department staff would be allocated to cannabis insurance filings.
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- Written by: Editor
As the U.S. House of Representatives continues discussion on proposed immigration legislation, the California Farm Bureau Federation says it cannot support a part of the bill that addresses agricultural employees.
Now before Congress, H.R. 4760, the Securing America’s Future Act, would fund a border wall and address internal immigration enforcement and the Deferred Action for Childhood Arrivals program. It also includes an Agricultural Guestworker Act, or AG Act, which would create a new agricultural visa program.
CFBF President Jamie Johansson said the AG Act, in its current form, contains a number of features that would harm the current immigrant employees on whom California farms and ranches depend. In addition, it would mandate use of the E-Verify electronic workplace-eligibility system, which could affect a large proportion of current agricultural employees.
“As now written, the AG Act just wouldn’t work for California farms and ranches,” Johansson said. “There’s a longstanding need to create a workable temporary-visa program for agriculture that provides greater stability and opportunities for agricultural employees and their families. The AG Act would cause too much disruption for our employees and our communities.”
Johansson said CFBF and other organizations have offered a number of recommendations for creating a more practical and flexible program to allow people from other countries to enter the U.S. to work on farms and ranches.
“We know the American Farm Bureau and other national agricultural organizations have decided to support the AG Act, and they have every right to do so,” Johansson said. “But as the largest agricultural organization in the largest agricultural state, we must advocate for a solution that works for our members and their employees. For California farmers and ranchers, the combination of the AG Act and E-Verify would actually worsen chronic agricultural employee shortages. We will press for a better solution.”
The California Farm Bureau Federation works to protect family farms and ranches on behalf of nearly 40,000 members statewide and as part of a nationwide network of more than 5.5 million Farm Bureau members.
Now before Congress, H.R. 4760, the Securing America’s Future Act, would fund a border wall and address internal immigration enforcement and the Deferred Action for Childhood Arrivals program. It also includes an Agricultural Guestworker Act, or AG Act, which would create a new agricultural visa program.
CFBF President Jamie Johansson said the AG Act, in its current form, contains a number of features that would harm the current immigrant employees on whom California farms and ranches depend. In addition, it would mandate use of the E-Verify electronic workplace-eligibility system, which could affect a large proportion of current agricultural employees.
“As now written, the AG Act just wouldn’t work for California farms and ranches,” Johansson said. “There’s a longstanding need to create a workable temporary-visa program for agriculture that provides greater stability and opportunities for agricultural employees and their families. The AG Act would cause too much disruption for our employees and our communities.”
Johansson said CFBF and other organizations have offered a number of recommendations for creating a more practical and flexible program to allow people from other countries to enter the U.S. to work on farms and ranches.
“We know the American Farm Bureau and other national agricultural organizations have decided to support the AG Act, and they have every right to do so,” Johansson said. “But as the largest agricultural organization in the largest agricultural state, we must advocate for a solution that works for our members and their employees. For California farmers and ranchers, the combination of the AG Act and E-Verify would actually worsen chronic agricultural employee shortages. We will press for a better solution.”
The California Farm Bureau Federation works to protect family farms and ranches on behalf of nearly 40,000 members statewide and as part of a nationwide network of more than 5.5 million Farm Bureau members.
- Details
- Written by: Editor
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